Data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.
Data mining consists of five major elements:
Â¢ Extract, transform, and load transaction data onto the data warehouse system.
Â¢ Store and manage the data in a multidimensional database system.
Â¢ Provide data access to business analysts and information technology professionals.
Â¢ Analyze the data by application software.
Â¢ Present the data in a useful format, such as a graph or table
Data mining techniques are the result of a long process of research and product development. This evolution began when business data was first stored on computers, continued with improvements in data access, and more recently, generated technologies that allow users to navigate through their data in real time. Data mining takes this evolutionary process beyond retrospective data access and navigation to prospective and proactive information delivery. Data mining is ready for application in the business community because it is supported by three technologies that are now sufficiently mature:
Â¢ Massive data collection
Â¢ Powerful multiprocessor computers
Â¢ Data mining algorithms